We've been talking about sustainability for decades, but we’re still falling well short of the 2030 Sustainable Development Goals. Climate change is already costing the global economy, with forecasts showing losses of 12% for every degree of warming, or up to 10% by 2050. The Los Angeles fires just burned through an estimated US$250 billion.
You’ll be seeing the effects on your news screen, in the cost of living and in getting supplies for your work.
But it's not too late to change course. And that’s what we are all about these days.
We need action, and we need it now. As government pulls back the private sector needs to step up. Together, we can create a sustainable, thriving future. Let’s make it happen.
So, what can we do?
Connect the dots
It’s clear the battle for hearts on minds on climate change and sustainability is ongoing.
I recently chatted to people who were here on a luxury cruise. Climate change was still a surprisingly new concept for them. They’d only recently seen their first community presentation about it. It really scared them. But they had no real idea of their own role, or the role of the businesses they work in and support.
Where do they live? California. (Hint: where those fires are…)
Closer to home, councils have started writing to people about ‘managed retreat’. They’re worried about the liability for coastal assets increasingly at risk from extreme weather and sea level rise. Insurers and mortgage lenders are looking ever more closely at the same thing. Some of my seaside neighbours scoffed at this. But friends of mine lost homes in Cyclone Gabrielle just two years ago. This is coming. It will be costly. Your business or home could be at risk.
That’s why SBN is turning up the noise on the realities we face. We need all our voices to amplify this message. For that we need leaders – not just at the top of organisations but all the way down. Our Leadership in Sustainable Business Course enables people to step up to this with confidence.
We must put more attention on innovation
Our economy is often described by the writer Bernard Hickey as “a housing market with bits tacked on.” Meanwhile, economist Ganesh Nana says private debt in all our mortgages is more of a concern than the Government's borrowing. He joined 14 other economists in an open letter expressing their concerns about Government fiscal policies.
Those policies are heightening division. There's the small but increasingly powerful “I’m sorted” group of wealthy Kiwis. Then there’s the rest of us. That’s unsustainable. The wealthy might be insulated from the daily pressures. But attempting to remain so, at the expense of others, is a recipe for social upheaval and terrible for business.
A thriving economy needs sustainable innovation and an ecosystem that supports it. That means long-term, resilient investment in clean technology, circular business models and sustainable exports. The world is crying out for them. Done well, we’ll attract and retain investors, along with attracting those with the other skills and talents we need. An austerity race to the bottom on taxation and environmental regulation won't do that.
Having thought about our own role in making this happen we pivoted our Awards to launch the finalists as the Next 95 – the nation’s boldest and most visionary innovators. We’re promoting them, and using their ideas to inspire and inform more. And we need your attention here too. We need to support them. Buy from them. Tell their stories. We need to attract investors and help boost the work they’re doing.
Partner and collaborate to get us through this current hump.
Our economy is struggling to fire amid waves of redundancies, cuts and business failures. We have to get out from under the cloud and get cracking. To do that we need to work together.
Handled well, these kinds of shocks can drive fresh approaches to long-standing challenges. Collaborations between businesses and government agencies can create well-distributed wealth and value creation.
SBN has always specialised in facilitating these kinds of partnerships. We’re currently working this way on procurement, construction, nature regeneration and more.
Whether you’re in our network, have worked with us or not, look out for a call, or call us.
Keep step with the latest developments
Frustration with ‘red/green tape’ has boiled over into the political sphere. It’s sparking a bonfire of critical climate and nature regulations, globally and here at home. We can and will fight this. But we can also take the lesson: that it’s time to refocus on what truly matters.
Many climate reporting entities are connecting their systems. That’s good news. However, a recent IBM study revealed spending on sustainability reporting exceeds spending on sustainability innovation by 43%. This needs to shift. This is where tech can help. There are fresh opportunities to use ‘Big Data’ and AI to do the data collection and reporting for us, enabling more human time on real action.
SBN supports efficient climate and sustainability reporting. But we must focus on positive outcomes. We must be prepared to act quite differently from the past. If you need help our Advisory is here to help clients develop robust plans with resilience and sustainability at their core.
Now’s the time for the private sector to step up. To get active. Join us. Connect with each other, so together we can create the future we want.
Photo: Trainers and participants at our Leadership in Sustainable Business course late last year.